United States
                               Environmental Protection
                               Agency
                          Solid Waste
                          and Emergency Response
                          (5306W)
                                                    EPA530-F-97-040
                                                    August 1997
                                                    http://www.epa.gov
&EPA
      JOBS
 THROUGH
RECYCLING
JTR  Grantee  Series
Arizona
                               B
       ;ased on the premise that the recycling industry in Arizona was in its infancy in
       1994, the Arizona Recycling Economic Development Advocate (REDA) identi-
       fied three important components for emerging recycling businesses to be suc-
       cessful: (1) a consistent supply of recovered materials, (2) a steady demand for
recycled products, and (3) greater education of state leaders. To develop a foundation for
recycling businesses, the REDA focused on providing leadership in recoverable materials
market development and creating recycling-oriented jobs statewide. Specific REDA goals
included:
• Employment: Bringing 5 recycling firms and
  500 recycling jobs to Arizona each year.
• Investment: Attracting new capital investment
  of $25 million each year.
• Capacity and utilization: Expanding the utiliza-
  tion of Arizona's post-consumer recovered and
  postprocess reusable materials by an average of
  5 percent each year.

PROGRAM ACTIVITIES
The Arizona REDA provided assistance to local
businesses in four areas:
Publications and Promotion
The REDA first established a strategic management
plan for the program. Next, the REDA initiated a
Recycling Market Development Study early in
the grant period. The study pulled together useful
market, recycling, and waste information to bet-
ter educate the public on the current recycling
market, inform business leaders and industry of
the availability of recyclable materials and their
uses, and showcase the recycled products made by
Arizona-based manufacturers and distributors.
Key projects include the Arizona Market
Development Tool Kit, composed of three tech-
nical assistance publications for reference on the
recycling climate and opportunities in Arizona;
the Arizona Recycling Technology Assistance
Program, a training workshop geared towards
government, and business sectors; and the Arizona
Buy Recycled Exposition, which highlighted
Arizona-based manufacturers, distributors, and their
recycled products.
                                           Grant Type:  REDA
                                           Office Awarded:
                                           Arizona Department of
                                             Commerce

                                           Project Partners:
                                           Arizona Department of
                                             Environmental Quality
                                           Year Awarded: 1994
                                           Funding:
                                           $ 74,000 in  EPA funding
                                           $ 40,000 in  state funding
                                           $114,000 in  total funding
                                           Materials Targeted:
                                           Paper
                                           Steel
                                           Niche items
                                                                          Contact Information:
                                                                          Mr. Greg Fisher
                                                                          National Marketing Division
                                                                          Arizona Department of
                                                                           Commerce
                                                                          3800 North Central
                                                                          Suite 1500
                                                                          Phoenix, AZ 85012
                                                                          Phone:  602 280-1395
                                                                          Fax: 602 280-1338
                                                                          E-Mail: gregf@ep.state.az.us

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              JOBS  THROUGH  RECYCLING
Business Assistance
The REDA assisted businesses by
explaining Arizona tax incentive pro-
grams, setting up site visits for prospec-
tive companies, and coordinating with
state and local permit authorities to
expedite development processes.
Database Development
The REDA assisted in expanding the
Arizona Department of Commerce's
(DOC's) business prospect database.
This database is part of a crucial database
for DOC's entire National Marketing
Division. The REDA also developed a
recycled market and media database.
   To develop sustainable
       recycling market
    development policies,
      the REDA met with
    state decision-makers
 to educate them about the
    recycling industry and
           how it ties
  into the state's economy.


Financial Assistance
A Recycling Business and Financial
Leadership Roundtable was held to pro-
mote the economic environment; more
than 30 Arizona business and financial
leaders attended. The REDA, upon
request, assisted numerous other busi-
nesses to secure financing through
referrals, letters of recommendation,
and joint meetings.
CHALLENGES OVERCOME
The REDA overcame several challenges
during the implementation of the
grant:
• Lack of understanding about
  recycling markets and the recycling
  industry on the part of the econom-
  ic development and political com-
  munities. To develop sustainable
  recycling market development poli-
  cies, the REDA met with decision-
  makers to educate them about the
  recycling industry and how it ties
  into the state's economy. To effective-
  ly present environmental legislation
  to  decision-makers in Arizona, the
  REDA tied the program to its
  economic benefits and provided
  statistics.
• Volatility of the markets. When
  mainstream recyclables declined in
  value, the REDA refocusecl on niche
  markets such as carpet pads and tires.
• Difficulty in raising capital. The
  REDA helped businesses overcome
  this obstacle by:
  • Encouraging national  banks with
    branches in Arizona to reinvest
    into the local economy. Often
    banks do not lend to startup busi-
    nesses, because they believe their
    projects are too risky, lack  collater-
    al, and do not have clear markets
    for their products.
  • Working with the. Arizona Depart-
    ment of Environmental Quality
     (DEQ) to assist prospective recy-
    cled product manufacturers
    through the grant and loan
    program.
    Assisting businesses in locating
    additional financing through the
    Business Incubator Program, Small
    Business Administration, venture
    capital organizations, the Finance
    Division of the DOC, Kirkworks,
    and the Environmental Capital
    Network.
   The REDA attempted to
develop additional supplies
 of recydables from within
 the state to help eliminate
  the excess costs of trans-
portation, and thus increase
    the economic benefits
   of recycling in Arizona.
  Lack of recyclable materials. With
  Arizona's statewide recycling rate at
  10 percent, there was a lack of post-
  consumer recyclable supply. Working
  with the DEQ to educate businesses
  and residents on the importance of
  recycling collection, the REDA
  attempted to develop additional sup-
  plies of recyclables from within the
  state. If successful, these efforts will
  help eliminate the excess costs of
  transportation, and thus increase the
  economic benefits of  recycling in
  Arizona.
  Limitations on agencies. DEQ con-
  cluded that the state benefits most with
  the market developer located at
  DOC with a cooperative tie to DEQ.
  DOC has more flexibility to fund
  market development programs than
  DEQ.

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JTR GRANTEE SERIES:  ARIZONA
LESSONS LEARNED
The REDA identified several lessons
learned and advice for new JTR
grantees:
• Know your state. Spend time show-
  ing prospective businesses around the
  state. Knowing about state economic
  development issues, geography, and
  the resources available to prospective
  businesses are keys to a successful
  assistance program. Also, know when
  and whom to contact for more infor-
  mation on aspects of the field in
  which prospects need assistance.
  Avoid bureaucratic habits, as this will
  produce limited results.
• Target assistance efforts. A grantee
  in a REDA position cannot provide
  detailed assistance to every business
  contacted. The level of assistance
  provided to businesses should be
  based on their willingness to help
  themselves. Grantees should avoid
  propping up failing businesses.
• Be flexible. Learn to  change the
  approach when things do not work.
  Even when an approach is
  working, continue to
  look for ways to enhance
  efforts.
ACCOMPLISHMENTS
During the 1994-1995 grant period,
the REDA educated state leaders in
Arizona about the recycling industry.
Benefits noted include increased waste
diversion and an increase in in-state
usage of materials, which reduces the
transportation necessary for end-market
delivery.
    The JTR grant created
 672 new recycling-oriented
 jobs and attracted $2OQ5
 trillion in recyding business
          investments.

The JTR grant created 672 new
recycling-oriented jobs and attracted
$200.5 million in recycling business in-
vestments. Arizona's recycling material
capacity expanded by approximately
758,000 tons per year, and the program
resulted in a 40 percent growth in end
use over 3 years. The accomplishments
were attributed to the use of strategic
planning, flexibility, and program evolution
when efforts were ineffective.

PROGRAM FUTURE
The U.S. Environmental Protection
Agency awarded another JTR grant to
Arizona in April 1996. The new project
is entitled "Project for a Sustainable
Arizona." The main goal of the new
grant is to create long-term job
opportunities in rural and tribal areas
of Arizona, focusing on forestry and
timber industry wastes.
The REDA continues to work with the
state of Arizona to increase its commit-
ment to recycling market development
by showing the positive economic impact
on the state. The REDA hopes to build
support in the Arizona State Legislature
by showcasing the results of the market
development study. Specifically, the
grantee is encouraging state leaders to
establish a statewide recycling goal  and
a recycling-focused solid waste manage-
ment plan, as well as expanded grant
funding through tipping fees.
  Business Management:
  Technical Assistance:
  Financial Assistance:
  Full-Time Equivalents Created:
  Amount of Capital Invested:
  Volume of New Capacity Created:
  Volume of Secondary Materials
  Actually Used:
       17O businesses assisted
       2OO businesses assisted
       22O businesses assisted

       672jobs
       $2O(X5 million
       7 68,000 tons  per year

       600,000 tons  per year

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              JOBS THROUGH  RECYCLING
 "The RED A  was very helpful to Wisconsin Tissue in
locating our Southwest operation. "
NIKE GRAVERSON AND NIKE BOGENSCHUTZ
Converting Facility General Manager and Tissue Mill Plant Manager, Wisconsin Tissue

               Wisconsin Tissue, based in
               Menasha, Wisconsin, has been
               making paper and paper products
               from recovered materials for decades. To better serve customers
on the West Coast, Wisconsin Tissue sought out new locations in the Southwest.
Assistance from the Arizona REDA, combined with tax incentives and the avail-
ability of an existing papermill facility, convinced Wisconsin Tissue to establish two
facilities in Arizona.
The REDA provided comprehensive assistance to Wisconsin Tissue from start to
finish. The REDA lined up site visits and tours of Arizona localities, helped the
company apply for an environmental technology tax credit, and assisted the com-
pany in preparing its bid for site locations. Upon Wisconsin Tissue's commitment
to Arizona,  the REDA and project partner Greater Flagstaff Economic Council
assisted Wisconsin Tissue on permitting and zoning issues.
A number of direct and  indirect economic and environmental benefits resulted
from Wisconsin Tissue's locating in Flagstaff, Arizona:
• Wisconsin Tissue  is one of the top 10 employers in the Flagstaff area. Within
  the manufacturing sector,  it is in the top five.
• The company employs approximately 160 semiskilled  and  skilled  full-time
  employees and 15 part-time employees.
• Paper waste diverted averages 40,000 tons per year.
• The wages and benefits package offered is substantially higher than the local
  average, adding a  substantial number of quality jobs to the Flagstaff area.
• The company invested more than $40 million in facilities and equipment.
• Wisconsin Tissue  is paying approximately $235,500 annually in local taxes.
• Wisconsin Tissue  is paying nearly $6 million in payroll.
• The facilities spend nearly $330,000 monthly for utilities.
• Annual local purchases are $1.66 million for equipment and supplies. State-
  wide spending amounts to $7.8 million.
• The company attracted new industry—a trucking company—to the local area to
  serve Wisconsin Tissue.
Publications

• Arizona Recycling Market
  Development Program Final
  Report. Summarizes results for
  the 1994-1995 JTR grant.

• Arizona Recycling Market
  Development Program. This mar-
  keting brochure summarizes the
  key economic and infrastructure
  opportunities for recycling and
  environmental technology com-
  panies interested in establishing
  operations in Arizona.

• Arizona Recycling Market
  Development Program Study. This
  4-volume publication includes:
  Summary Report, Economic
  Impact of Recycling in Arizona,
  Arizona Recycling Market
  Prospectus, and the Arizona
  Recycling Resource Directory.
  Together the volumes document
  recycling market opportunities
  in Arizona. Including market
  supply information and recom-
  mendations for enhancing the
  level of recycling collection in-
  state, the study comprehensively
  examines Arizona's recycling
  market.

• Fiscal Impact of Wisconsin Tissue
  on Coconino County (Economic
  Strategies Group, 1996). This
  study assesses the primary and
  secondary impacts of Wisconsin
  Tissue on the local economy.

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